I've discovered I'm paying twice for buildings insurance. Should I cancel my policy?,,,

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The works have been completed and the claim is closed, so can I now cancel my building insurance and just rely on the cover through my service charges? NR

Are you paying for your own buildings insurance unaware that you are already covered?

Emily Spaven, of This is Money, replies: It must be frustrating knowing you have been effectively paying twice for your buildings insurance.

This situation highlights just how important it is to find out whether you already have cover and, perhaps more crucially, what type it is.

There are so many buildings insurance policies on the market, with some insurers only supplying basic cover and others offering protection for major issues, such as flooding.

While checking you are not insured twice is important, it is essential that you check you have some form of cover in place. You could get caught out if you think you are protected, but it turns out you are not.

  More... 'I switch insurers every year': Cut insurance costs without the risk Buying insurance through a broker can push up your premiums by £500 a year June's downpours cause £40million of insurance losses at MoreThan

Regarding your options, I asked Alex Stutchbury, of Endsleigh Insurance, who said: The situation you describe can occur when a freeholder arranges buildings insurance to protect his interest as owner of the building and the land it sits on. A service charge is then made to the individual leaseholders.

Home insurance falls into two sections: building and contents. Generally the buildings insurance covers all permanent fixtures and fittings including outbuildings, whereas the contents insurance includes household goods and personal property.

The freeholder might only take out a standard block buildings insurance policy, so it is important that the individual owner reviews the insurance cover to ensure full cover is in place.

A leaseholder can independently take out insurance for his or her property if more comprehensive cover is required.

In this case, you can certainly cancel your separate insurance you have claimed on.

Due to the insurer paying out, they will not normally allow any refund of premium. However, it would be a good idea to check the terms of cover under your ‘service charge schedule’ in any case. 

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